The Rising Tide of Financial Crime: A Ponzi Scheme Case Analysis

Main Article Content

Rizaldy Anggriawan
Muh Endriyo Susila
Ming Hsi Sung
Dwilani Irrynta


Ponzi scheme is one of the most common types of fraud perpetrated by con artists. The reason for this is that the mode is relatively easy to conceal. In this regard, criminal law plays a significant role in countering fraudulent practices. It serves as an initial warning to individuals who intend to engage in such behavior that they may face harsh penalties if they do so. The study aims to compare and analyze the Ponzi and pyramid schemes in the framework of criminal law enforcement. It also thoroughly investigates the criminal rules and their application to specific cases associated with Ponzi and pyramid schemes in Indonesia. This normative or doctrinal legal research employs statutory, conceptual, and case approach. The study reveals that there is some confusion in the community as well as the legal enforcement officers on the practice of Ponzi and pyramid schemes. As a result of this discrepancy, law enforcement officers may be incorrect in ensnaring an allegation against the offenders, or they may even consider that offenders are innocent. It is also exacerbated by the lack of a single rule that particularly governs the issue of Ponzi schemes, which may result in a legal vacuum. This circumstance might therefore be used by irresponsible persons to create such business companies that use Ponzi schemes and conceal their actions with crypto investment or robot trading software, as recently occurred in Indonesia.

Article Details

How to Cite
Anggriawan, R., Susila, M., Sung, M., & Irrynta, D. (2023). The Rising Tide of Financial Crime: A Ponzi Scheme Case Analysis. Lex Scientia Law Review, 7(1), 307-346.
Author Biographies

Rizaldy Anggriawan, Universitas Muhammadiyah Yogyakarta

Rizaldy Anggriawan is a researcher at International Centre for Law and Sharia Studies, Faculty of Law, Universitas Muhammadiyah Yogyakarta. He received his LL.M. from the Department of Financial and Economic Law, Asia University, Taiwan and Bachelor of Law from Faculty of Law, Universitas Muhammadiyah Yogyakarta, Indonesia. He published his works at some international reputable journals and publishers such as Sriwijaya Law Review, Hasanuddin Law Review, Journal of Indonesian Legal Studies, IGI Global, etc. Rizaldy’s research interests include criminal law, data privacy law, law and society, comparative law, and competition law.

Muh Endriyo Susila, Universitas Muhammadiyah Yogyakarta

Muh. Endriyo Susila is a Senior Lecturer in School of Law Universitas Muhammadiyah Yogyakarta (UMY) Indonesia. He teaches several courses including Medical Law and Criminal Law. Endriyo obtained his Ph.D. and MCL from Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia. He has published various articles on Medical Law issues and authored a textbook entitled The Criminal Law of Indonesia.

Ming Hsi Sung, Asia University

Ming Hsi Sung is an Assistant Professor and Chair of East Asia Law Center, Department of Financial and Economic Law, Asia University, Taiwan. He obtained his J.S.D., at New York University School of Law in 2010; LL.M. at New York University School of Law in 2002; LL.M. at National Cheng-Chi University, Taiwan, 1994; and LL.B. at National Taiwan University, 1992. He is a member of the National Compensation Committee of Construction Bureau, Taichung Municipal Government, Taiwan. He is also part of a member of the Taichung City Traffic Accident Investigation Committee, Taiwan. His research interests are Criminal Law, Law and Society, Law and Culture, Chinese Law, Comparative Law, International Law, and Jurisprudence.

Dwilani Irrynta, Universitas Muhammadiyah Yogyakarta

Dwilani Irrynta is an undergraduate student of the International Program for Law and Sharia, the Faculty of Law, Universitas Muhammadiyah Yogyakarta. She participated in the student exchange program at International Islamic University Malaysia in 2019 and Adam Mickiewicz University, Poland from 2020 to 2021. She was awarded the best article on the 'Business Economic Law' Theme in the i-WIN Library International Article Competition held by Universiti Sains Malaysia in 2021. She also has published various articles on International Law and Human Rights issues in reputable journals.


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